Stephen Kelleher v. Wedbush Securities Inc. fka Wedbush Morgan Securities Inc., Edward W. Wedbush
Published: Jul. 16, 2011 | Result Date: Jun. 23, 2011 | Filing Date: Jan. 1, 1900 |Case number: 10-01568 Arbitration – $3,500,000
Facts
Stephen Kelleher filed a complaint against Wedbush Securities fka Wedbush Morgan Securities Inc. and Edward Wedbush in connection with Kelleher's employment contract with Wedbush Morgan relating to monies owed to claimant.
Settlement Discussions
Kelleher dismissed all claims against Edward Wedbush. The matter continued as to the other respondents.
Damages
Kelleher sought principal damages in the amount exceeding $5.7 million; damages for the initial failure to pay statutory damages in the amount of $2,100; and damages for the subsequent failure to pay statutory damages in the sum in excess of $1.4 million. At the close of hearing Kelleher sought unpaid compensation in excess of $4.1 million; $877,779 in interest; penalties for Labor Code violations for $2,100 and in excess of $4.1 million; unspecified damages for Civil Code Section violation; and unspecified punitive damages.
Injuries
Kelleher alleged the following causes of action: breach of contract; violation of Labor Code Section 210; failure to pay amount conceded due under Labor Code Section 206; fraud; and unfair business practices.
Result
The panel concluded that the major cause of the dispute was the poorly written and ambiguous employment contract and a corporate management structure. The panel also found the respondent was morally reprehensible for its failure and refusal to compensate Kelleher in a timely manner. Wedbush Morgan was found liable for $3.5 million to Kelleher, which included all damages, interest, penalties and attorney fees. The panel also decided that respondent should grant Kelleher the vested option to purchase 3,750 shares of Wedbush Morgan stock at a strike price of $20.00 per share and an additional 375 shares at a strike price of $26.00 per share. Respondent was also found liable for $200.00 to reimburse Kelleher for the non-refundable portion of the FINRA filing fee.
Other Information
ARBITRATORS: Ferdinand Schoch, James R. Dickson, Walter P. Hitchock.
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